U.S. Bancorp in Minneapolis is cooperating with a federal investigation of a racecar driver accused of running a payday lending scam.
The $438 billion-asset company disclosed in its quarterly filing that the U.S. Attorney's Office in Manhattan is looking at its banking relationship with Scott Tucker, who was indicted in February over allegations he ran a $2 billion enterprise that used phony relationships with Native American tribes to claim immunity from state enforcement actions over its lending practices.
Tucker, who has pleaded not guilty, and his businesses maintained "certain deposit accounts" with U.S. Bancorp, the filing said.
From 1997 until 2013, Tucker operated payday lending companies that gave 4.5 million Americans short-term, high-interest loans under "deceitful" circumstances, according to a federal indictment filed in New York. Prosecutors allege that Tucker and his companies charged 700% or more for loans during that time period.
Tucker allegedly earned hundreds of millions of dollars in profits, spending the money on luxury homes, cars, jewelry, a private plane and his professional racing team, Level 5 Motorsports, according to the indictment.
U.S. Bancorp also disclosed that the U.S. Attorney's Office had also requested information on aspects of its Bank Secrecy Act and anti-money-laundering compliance program. U.S. Bancorp in October entered into a consent order with the Office of the Comptroller of the Currency concerning deficiencies in its BSA and AML programs.